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RH shares jump after second quarter beat

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Core Development: RH shares jump after second quarter beat
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Market & Financial Impact: Live financial intelligence and market filing report on ZeroLive.
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Actionable Insight: 🟢 Bullish Trigger: Positive business expansion or earnings beat may attract institutional and retail buying.

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Investing.com -- RH reported second quarter earnings that exceeded Wall Street expectations on both profit and revenue, sending shares up nearly 12% in after-hours trading on Thursday.

The home furnishings retailer posted earnings per share of $2.70, handily beating the analyst estimate of $0.39 by $2.31. Revenue reached $922.2 million, compared to the consensus estimate of $915.44 million.

For the full fiscal year 2026, RH expects revenue growth between 5.5% and 7.0%. The company projects adjusted EBITDA margin in the range of 15.0% to 16.2%. Free cash flow, asset sales and distribution of equity method investments are forecast between $300 million and $400 million. The outlook includes an approximate negative 340 basis point impact on adjusted EBITDA margin from preopening and startup costs related to international expansion.

The company's third quarter 2026 outlook calls for revenue growth of 5.0% to 6.0%, which includes a backlog reduction contributing 2.5 percentage points, RH Estates adding 2.0 percentage points, and new galleries and other factors contributing 1.0 percentage point. Adjusted EBITDA margin is expected between 12.5% and 13.5%, with an approximate negative 310 basis point impact from international expansion costs.

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